Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020

Administered by Department of the Treasury

Legislation au F2020N00043 Not in force Notifiable Instrument

Legislation content

 

Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020

made under section 7 of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020

Compilation No. 02  

Compilation date:   12 November 2020

Includes amendments up to: F2020N00132

 

 

About this compilation

 

This compilation

This is a compilation of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020 that shows the text of the law as amended and in force on 12 November 2020 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

 

 

Contents

1  Name

3  Authority

4  Definitions

5  Delegation

6  Directions

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

 

1  Name

  This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020.

3  Authority

  This instrument is made under section 7 of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.

4  Definitions

Note: A number of expressions used in this instrument are defined in the Act, including the following:

(a) financial institution;

(b) SME entity.

  In this instrument:

Act means the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.

5  Delegation

  I, Josh Frydenberg, Treasurer, acting under section 7 of the Act, delegate all of my powers under section 5 of the Act to each person occupying, or performing the duties of, the following positions:

 (a) Secretary of the Department;

 (b) Deputy Secretary of the Department.

6  Directions

 (1) The delegates are directed to have regard to the following subsections in exercising the delegated powers.

 (2) The total face value, in Australian currency, of loans in connection with which guarantees are granted should not exceed $40 billion.

 (5) A loan in connection with which a guarantee is granted should be intended to be used only for business purposes.

 

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history. 

Endnote 2—Abbreviation key

 

o = order(s)

ad = added or inserted

Ord = Ordinance

am = amended

orig = original

amdt = amendment

par = paragraph(s)/subparagraph(s)

c = clause(s)

    /sub‑subparagraph(s)

C[x] = Compilation No. x

pres = present

Ch = Chapter(s)

prev = previous

def = definition(s)

(prev…) = previously

Dict = Dictionary

Pt = Part(s)

disallowed = disallowed by Parliament

r = regulation(s)/rule(s)

Div = Division(s)

 

exp = expires/expired or ceases/ceased to have

reloc = relocated

    effect

renum = renumbered

F = Federal Register of Legislation

rep = repealed

gaz = gazette

rs = repealed and substituted

LA = Legislation Act 2003

s = section(s)/subsection(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

(md) = misdescribed amendment can be given

Sdiv = Subdivision(s)

    effect

SLI = Select Legislative Instrument

(md not incorp) = misdescribed amendment

SR = Statutory Rules

    cannot be given effect

Sub‑Ch = Sub‑Chapter(s)

mod = modified/modification

SubPt = Subpart(s)

No. = Number(s)

underlining = whole or part not

 

    commenced or to be commenced

 

Endnote 3—Legislation history

 

Name

Registration

Commencement

Application, saving and transitional provisions

Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020

F2020N00043

6 April 2020

—

Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Amendment Delegation 2020

F2020N00060

15 May 2020

—

Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Amendment Delegation (No. 2) 2020

F2020N00132

12 November 2020

—

 

Endnote 4—Amendment history

 

Provision affected

How affected

s 2

Rep LA s 48D

s 6(4)

Rep No. F2020N00060

s 6(3)

Rep No. F2020N00132

 

 

Overview

The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 was enacted to provide for a government guarantee of lending to small and medium enterprises (SMEs) to support their liquidity and viability during the COVID-19 pandemic. This legislation was introduced to address the urgent financial needs of SMEs that were severely impacted by the pandemic, ensuring they had access to necessary credit to sustain their operations and employment. The Act was passed by the Parliament of Australia, with a policy objective of mitigating the economic fallout caused by the pandemic and supporting the recovery of SMEs, which are critical to the economy. The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020 was made under section 7 of the Act, delegating specific powers to the Treasurer, who then further delegated these powers to the Secretary and Deputy Secretary of the Department. The delegation aims to facilitate the efficient administration of the guarantee scheme by allowing these officials to make decisions in line with the Act's provisions, while ensuring that the total face value of guaranteed loans does not exceed $40 billion and that the loans are intended solely for business purposes.

Scope and Application

The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020 applies to the delegation of powers under section 5 of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. The Act itself is focused on providing financial support to small and medium enterprises (SMEs) during the coronavirus pandemic. Specifically, the delegation empowers the Secretary of the Department and the Deputy Secretary of the Department to act on behalf of the Treasurer in granting guarantees for loans to SMEs, with certain limitations and guidelines. These include a cap on the total face value of guaranteed loans at $40 billion and the stipulation that loans must be intended for business purposes only. The application of this delegation is national, given its basis in Commonwealth legislation. There are no specific exclusions or exemptions mentioned in the delegation, but it does incorporate directions that must be considered when exercising the delegated powers. Any further refinement or detail regarding the scope of application may be found in subordinate instruments or guidance issued under the authority of the Act.

Key Provisions

The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020 (sections 5 and 6) delegates specific powers under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 to the Secretary of the Department and the Deputy Secretary of the Department. These powers pertain to the granting of guarantees for loans to small and medium enterprises (SMEs) as part of the Coronavirus Economic Response Package. The delegation is made under section 7 of the Act and includes directions that the total face value of the guaranteed loans should not exceed $40 billion and that the loans should be intended solely for business purposes. The Act imposes specific obligations on the parties involved in the lending process, particularly the financial institutions and the SMEs. Financial institutions are required to comply with the terms and conditions set out in the Act and the delegation, ensuring that the loans provided are used for legitimate business purposes and do not exceed the specified financial limits. SMEs, on the other hand, must meet the eligibility criteria for receiving these guarantees, which typically involve being a small or medium-sized business and demonstrating financial need due to the impact of the coronavirus. Failure to comply with the provisions of the Act or the terms of the delegation can result in various consequences. While the specific penalties are not detailed in the instrument, breaches of similar legislative frameworks generally result in civil or criminal penalties. These may include fines, legal action, or other administrative penalties. The maximum penalties would be determined based on the severity of the breach and would be consistent with other financial regulatory frameworks in Australia. The delegation also includes endnotes that provide additional context and details about the legislative history, amendments, and the application of the compiled law. These notes are crucial for understanding the evolution of the legislation and any modifications or repeals that may have occurred. For example, endnote 3 details the legislative history, including the registration and commencement dates of the various amendments, while endnote 4 outlines the amendment history at the provision level, noting any repealed sections or amendments that could not be incorporated due to misdescription.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.